ILNews

Ministers not protected under labor act

Jennifer Nelson
January 1, 2008
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The 7th Circuit Court of Appeals upheld a District Court's decision to toss out a case because the plaintiffs were not entitled to minimum wage and overtime under the "ministerial exception," although the Circuit Court modified the reason for dismissing the case.

In Steve and Lorrie Schleicher v. The Salvation Army, No. 07-1333, the Schleichers appealed the decision of U.S. District Judge Richard Young of the Southern District of Indiana, Indianapolis Division, to dismiss the case for lack of federal jurisdiction. The Schleichers, ordained ministers of The Salvation Army, brought a suit against The Salvation Army, charging violations of the minimum wage and overtime provisions of the Fair Labor Standards Act.

The Schleichers were administrators of The Salvation Army's Adult Rehabilitation Center in Indianapolis. The job did not pay wages, but they received a stipend of $150 a week. The Rehabilitation Center operated a total of five thrift shops, and most of the thrift shop employees were people down on their luck that The Salvation Army was attempting to redeem.

The couple was later expelled from The Salvation Army for filing the suit.

The 7th Circuit Court of Appeals agreed with Judge Young's decision to dismiss the case, although the case should have been dismissed because of lack of merits in the plaintiff's claims, wrote Judge Richard Posner.

The Schleichers were not employed by the thrift shops they worked at, nor is the Rehabilitation Center an ordinary business enterprise that would be subject to the Fair Labor Standards Act. The Rehabilitation Center is a church, administered by church officials.

The question the Circuit Court had to decide was whether the fact that a church has a commercial dimension brings its ministers under the Fair Labor Standards Act.

It does not, using the Schleichers case as an example, wrote Judge Posner, because the ministers who run the Rehabilitation Center don't wait on customers or manage the day-to-day operations, but instead they manage the religious complex that includes the thrift shops.

Comparing the Schleichers' thrift shops to a Catholic cathedral that runs a gift shop, Judge Posner wrote that the employees of the thrift shop would be subject to the Fair Labor Standards Act, but the bishop who administers the cathedral is not.

"The Salvation Army's Adult Rehabilitation Centers are functional equivalents of cathedrals or monasteries, and the ministers who administer them are therefore engaged in ecclesiastical administration," he wrote.

The best way to decide the case is to presume clerical personnel are not covered by the Fair Labor Standards Act, which can be rebutted by proof a church is fake or the title of "minister" is not appropriately bestowed upon an employee.

The Schleichers are properly ordained ministers in a completely legitimate church, so they are not subject to the Fair Labor Standards Act.

Judge Posner wrote that although Judge Young was correct in dismissing the case, the judge dismissed the case for the wrong reason, creating a harmless error. Judge Young dismissed the case under a rule that allowed the court to toss cases that are not within the jurisdiction of the District Court. The case should have been dismissed because of its merits - that the court would not rule in an ecclesiastical controversy, Judge Posner wrote.
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  1. This law is troubling in two respects: First, why wasn't the law reviewed "with the intention of getting all the facts surrounding the legislation and its actual impact on the marketplace" BEFORE it was passed and signed? Seems a bit backwards to me (even acknowledging that this is the Indiana state legislature we're talking about. Second, what is it with the laws in this state that seem to create artificial monopolies in various industries? Besides this one, the other law that comes to mind is the legislation that governed the granting of licenses to firms that wanted to set up craft distilleries. The licensing was limited to only those entities that were already in the craft beer brewing business. Republicans in this state talk a big game when it comes to being "business friendly". They're friendly alright . . . to certain businesses.

  2. Gretchen, Asia, Roberto, Tonia, Shannon, Cheri, Nicholas, Sondra, Carey, Laura ... my heart breaks for you, reaching out in a forum in which you are ignored by a professional suffering through both compassion fatigue and the love of filthy lucre. Most if not all of you seek a warm blooded Hoosier attorney unafraid to take on the government and plead that government officials have acted unconstitutionally to try to save a family and/or rescue children in need and/or press individual rights against the Leviathan state. I know an attorney from Kansas who has taken such cases across the country, arguing before half of the federal courts of appeal and presenting cases to the US S.Ct. numerous times seeking cert. Unfortunately, due to his zeal for the constitutional rights of peasants and willingness to confront powerful government bureaucrats seemingly violating the same ... he was denied character and fitness certification to join the Indiana bar, even after he was cleared to sit for, and passed, both the bar exam and ethics exam. And was even admitted to the Indiana federal bar! NOW KNOW THIS .... you will face headwinds and difficulties in locating a zealously motivated Hoosier attorney to face off against powerful government agents who violate the constitution, for those who do so tend to end up as marginalized as Paul Odgen, who was driven from the profession. So beware, many are mere expensive lapdogs, the kind of breed who will gladly take a large retainer, but then fail to press against the status quo and powers that be when told to heel to. It is a common belief among some in Indiana that those attorneys who truly fight the power and rigorously confront corruption often end up, actually or metaphorically, in real life or at least as to their careers, as dead as the late, great Gary Welch. All of that said, I wish you the very best in finding a Hoosier attorney with a fighting spirit to press your rights as far as you can, for you do have rights against government actors, no matter what said actors may tell you otherwise. Attorneys outside the elitist camp are often better fighters that those owing the powers that be for their salaries, corner offices and end of year bonuses. So do not be afraid to retain a green horn or unconnected lawyer, many of them are fine men and woman who are yet untainted by the "unique" Hoosier system.

  3. I am not the John below. He is a journalist and talk show host who knows me through my years working in Kansas government. I did no ask John to post the note below ...

  4. "...not those committed in the heat of an argument." If I ever see a man physically abusing a woman or a child and I'm close enough to intercede I will not ask him why he is abusing her/him. I will give him a split second to cease his attack and put his hands in the air while I call the police. If he continues, I will still call the police but to report, "Man down with a gunshot wound,"instead.

  5. And so the therapeutic state is weaonized. How soon until those with ideologies opposing the elite are disarmed in the name of mental health? If it can start anywhere it can start in the hoosiers' slavishly politically correct capital city.

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